1. Home
2. Conferences
3. 2024 Extension Risk Management Education National Conference

Farm Financial Analysis and Benchmarking - An Uphill Battle

Courtney Bir

Summary

Farm financial planning is an important part of farm management. Coupled with statewide benchmarking, farm financial planning can be a helpful tool used to understand the position of an individual over time and across like farms. Three years ago, Oklahoma State partnered with the University of Minnesota to use their FINBIN software to complete whole farm workups for agricultural producers. The goal was to have enough producers of similar operations to benchmark the state level data and contribute to the FINBIN database. With grant funding, we were able to provide software and training for 11 state, area, and county Extension educators. The program is currently an option for those who need FSA borrower training. We continued to partner with the FSA and OBA (Oklahoma Bankers Association) to communicate the importance of knowing your farm’s financial standing. Despite these efforts, the program was not a success. At in-person talks or Zoom programs, farmers/ranchers would be interested in the program but would not follow through. This is despite educators reaching back out to them to check on progress/offer help. Interestingly, there was little to no demand for beginning borrower training, which also hurt our program. One success story was the Pawnee Nation. They have successfully completed two years of financial planning, as well as a business plan. They are using the results to communicate with the tribe regarding the status of their cowherd. I believe this poster will stimulate conversations surrounding ideas to promote and support farm financial planning efforts.

Details

---